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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Office of Inspector General's Partnership Plan--Utah Division of Health Care Financing Reports on Medicaid Pharmacy Acquisition Costs of Brand Name and Generic Drugs," (A-06-99-00035 & A-06-99-00036)

May 4, 1999

Complete Text of Report is available in PDF format (4.78 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


These two final reports provide results of review of Medicaid prescription drugs pharmacy acquisition costs conducted by the Utah Division of Health Care Financing (UHCF) as part of the OIG's partnership efforts with State Medicaid agencies to expand oversight of the Medicaid program. The reports point out that Utah could realize significant savings on brand name and generic drugs if, instead of reimbursing drugs on average wholesale price less a certain percentage, the reimbursement for the ingredient portion of Medicaid drugs was more consistent with what pharmacies actually pay for such drugs. Based on their findings the UHCF concludes that the State should undertake a through review of pharmacy reimbursement policy.